Vancouver, British Columbia--(Newsfile Corp. - February 2, 2021) - Gaia Metals Corp. (TSXV: GMC) (OTCQB: RGDCF) (FSE: R9G) (the "Company") is pleased to announce an amendment to the terms of the Option Agreement (the "Agreement") with O3 Mining Inc. for the FCI Property, whereby the Company maintains its Option to acquire up to a 75% interest. The FCI Property is comprised of two neighboring claim blocks, for a combined total of 5,688 ha, located in the James Bay Region of Quebec, proximal to regional hydro-electric and road infrastructure. The geologic setting is prospective for gold, silver, PGEs, base metals, and lithium-tantalum over several potential deposit styles including orogenic gold, volcanogenic massive sulfide (VMS), komatiite (ultramafic), and lithium pegmatite.
Under the terms of the amendment, the Company will issue a total of 500,000 common shares to O3 Mining and the Agreement's Year 2 Anniversary Date will be reset to November 3rd, 2021. The amendment follows a Force Majeure period that was triggered in 2020 in lieu of the uncertainty and restrictions caused by COVID-19 and brings the Agreement extension in line with that issued by the Ministry of Energy and Natural Resources (MERN) for claim exploration requirements in the Province of Quebec. The remaining requirements of the FCI Option Agreement are detailed at the end of this news release.
Company President and Director Blair Way comments, "We are happy to have secured an amendment to this Agreement with O3 Mining in light of the global pandemic and look forward to advancing this high-quality asset that has demonstrated considerable potential for gold, silver, copper, and lithium. Gaia Metals is positioned strongly to benefit from the global recovery efforts that will be focused on green technologies, which will result in an insatiable demand for those commodities we are focused on at both FCI and Freeman Creek."
The FCI claim blocks form a contiguous land package with the Company's wholly owned Corvette claim block and are collectively termed the Corvette-FCI Property, totalling 283 claims and 14,496 ha. The Property is situated within the Guyer Group (wacke, iron formation, komatiite, tuffs, amphibolite) of the greater La Grande Greenstone Belt, which trends east-west through the region, approximately 6 to 18 km south of the Trans-Taiga Road and power line corridor.
The primary target areas are the Golden Gap Prospect and the Maven Copper-Gold-Silver Exploration Trend. However, the Property also hosts a largely underexplored lithium pegmatite trend in excess of 25 km in length where high-grade spodumene pegmatite has been discovered. A summary of exploration results is presented in Figure 1 and is further described below. The Company is currently planning the 2021 exploration campaign at Corvette-FCI and will provide an update in due course.
Figure 1: Exploration summary of the Corvette and FCI claim blocks (collectively, the "Corvette-FCI Property")
To view an enhanced version of Figure 1, please visit:
Golden Gap Prospect
The Golden Gap Prospect is a gold-bearing horizon associated with a deformation zone in a volcano-sedimentary sequence. Mineralization is associated with deformed quartz veins and pyrrhotite-pyrite-arsenopyrite sulphide assemblage. Historical sampling at Golden Gap returned 3 to 108.9 g/t Au in outcrop and 10.5 g/t Au over 7 m in drill hole. In 2019, surface sampling by the Company discovered two new areas of outcrop exposure assaying 1.87 g/t Au and 2.81 g/t Au, indicating a possible western surface extension of the main Golden Gap occurrence. In addition, a 2020 re-interpretation of IP-resistivity data over the Prospect indicates a distinctly different and yet to be drill tested trend of mineralization, compared to the historical interpretation.
Maven Copper-Gold-Silver Exploration Trend
The Elsass and Lorraine copper-gold-silver prospects were discovered in 2019 and are located in an area not historically prospected, approximately 2.5 km southeast of the Golden Gap Prospect, and within the Maven Copper-Gold-Silver Exploration Trend. The main trend contains the Lorraine (8.15% Cu, 1.33 g/t Au, & 171 g/t Ag), Elsass (3.63% Cu, 0.64 g/t Au, & 52.3 g/t Ag), and Black Forrest (1.13% Cu, 0.05 g/t Au, and 19.5 g/t Ag) discoveries from 2019, as well as the historical Lac Smokycat-SO (1.75% Cu, 1.47 g/t Au, & 40.5 g/t Ag) and Tyrone T-9 showings (3.36% Cu, 0.82 g/t Au, & 38.4 g/t Ag), collectively spanning a strike length of over 5 km. The trend continues for another 3+ km to the southeast with the incorporation of the newly discovered Hund Showing (3.28% Cu, 0.78 g/t Au, & 30.1 g/t Ag) and additional proximal historical showings, for a collective prospective copper-gold-silver trend of more than 8 km. The Maven Copper-Gold-Silver Exploration Trend remains to be drill tested.
Lithium-Tantalum Pegmatite Trend
To date, a total of eleven (11) well mineralized spodumene pegmatites have been identified with the discoveries outlining a prospective lithium exploration corridor across the entirety of the Corvette-FCI Property - in excess of 25 km of prospective trend. The potential is highlighted by the CV1 and CV5-6 pegmatite occurrences, which outline a core lithium trend in excess of two kilometres. The CV5 spodumene pegmatite is the largest and most well-mineralized occurrence discovered to date on the Property, with approximate exposed dimensions of 220 m long x 20-40 m wide, with CV1 similar in size. Discovered in 2019, a total of eight (8) samples have been collected from the CV5 Pegmatite, averaging 3.00% Li2O and 154 ppm Ta2O5, including a peak assay of 4.06% Li2O and 564 ppm Ta2O5. The exploration corridor remains largely unexplored with the pegmatites discovered to date typically hosting a strong tantalum component in addition to the lithium. All lithium pegmatite targets on the Property remain to be drill tested.
Under the terms of the amended Agreement, originally entered into in 2018 (See news releases dated September 4th, 2018 and April 24th, 2019), the remaining earn-in requirements by the Company for the FCI Property are as follows (all dollars are stated in CA$):
- Incur a total of $800,000 in work exploration expenditures on or before the second anniversary date (November 3rd, 2021), upon which the Company would vest a 25% interest. A total of approximately $165,000 of exploration expenditures has been incurred to date towards Year 2
- Incur an additional $1,200,000 in work exploration expenditures on or before the third anniversary date (November 3rd, 2022), upon which the Company would vest an additional 25% interest, for a total of 50% undivided interest in the FCI Property
O3 Mining will act as Operator of the FCI Property for the term of the 50% earn-in, with a Steering Committee of equal representation formed to provide advice and direction to the Operator. Upon completion of the 50% earn-in (third anniversary date of Agreement), a Joint Venture Corporation will be formed with the Company retaining an Option to acquire a further 25% interest, for a total of 75% undivided interest, though funding of the next $2,000,000 in exploration expenditures. The Company may become Operator upon notice to O3 Mining that it intends to incur the $2,000,000 in work expenditures for a final undivided interest of 75%. O3 Mining's remaining 25% interest may be further reduced through dilution if they elect to not fund their portion of subsequent exploration/development. If ownership falls below 10%, O3 Mining will have the right to convert this remaining interest into a 1% Net Smelter Royalty (NSR), of which, the Company retains the right to buy for $5,000,000 (cash or shares), and thereby, would obtain a 100% undivided interest in the FCI Property.
The FCI Property is subject to a 1.5% precious metal NSR royalty on production of the first 1M oz and increases incrementally as a function of metal price and production thereafter to a max of 3.5%. A 2.0% NSR royalty is present on all other products; however, the collective aggregate royalty on any claim may not exceed 3.5%.
Darren L. Smith, M.Sc., P. Geo., Vice President of Exploration for the Company and Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
About Gaia Metals Corp.
Gaia Metals Corp. is a mineral exploration company focused on the acquisition and development of mineral projects containing base and precious metals, including platinum group elements, and lithium.
The Company's flagship asset is the Freeman Creek Gold Property, located in Idaho, USA. The Property hosts two major advanced targets; the Gold Dyke Prospect, with an historical drill intercept of 1.5 g/t Au and 12.1 g/t Ag over 44.2 m (RDH 8), and the Carmen Creek Prospect, with surface sample results including 25.5 g/t Au, 159 g/t Ag, and 9.75% Cu.
Additional assets include the wholly owned Corvette Property, and the FCI Property (held under Option from O3 Mining Inc.) located in the James Bay Region of Quebec. The properties are contiguous and host significant gold-silver-copper-PGE-lithium potential highlighted by the Golden Gap Prospect with grab samples of 3.1 to 108.9 g/t Au from outcrop and 10.5 g/t Au over 7 m in drill hole, the Elsass and Lorraine prospects with 8.15% Cu, 1.33 g/t Au, and 171 g/t Ag in outcrop, and the CV1 Pegmatite Prospect with 2.28% Li2O over 6 m in channel.
In addition, the Company holds the Pontax Lithium-Gold Property, QC; the Golden Silica Property, BC; and the Hidden Lake Lithium Property, NWT, where the Company maintains a 40% interest, as well as several other assets in Canada.
On Behalf of the Board of Directors,
Adrian Lamoureux, CEO and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward Looking Statements:
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/73337